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AFAIK, SE mods are not picked based on karma, you can nominate yourself to be mod, and users will vote according to many indicators, not karma only.

Elections: http://stackoverflow.com/election

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While this is correct, I think his complaint is about the privileges that high-reputation users get. Most moderation is done by ordinary users, not by elected moderators.

Your assumption is correct.

That's not strictly true.

Full moderators are elected... but high-rep users take on a ton of moderation tasks.

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